Canada condo sales slowing down

Condo sales activity in three of Canada’s eight major markets – Ottawa, Calgary and Edmonton – is expected to drop this year, according to the Metropolitan Condo Outlook Winter 2008 report. At the same time, prices are expected to increase at a more modest rate than previously in all cities in the study except Montreal in 2008.

“In many cities condominiums are filling a need for relatively affordable housing close to the city core. Since prices for single-detached bungalows, for example, are pushing $500,000 in some Toronto and Calgary neighbourhoods and at least $650,000 in Vancouver, condominiums represent an important first step for many housing market entrants,” the report says.

A slowdown in price growth could finally bring a bit of relief to the country’s priciest markets, Vancouver and Victoria, where condos are the only option for many buyers.